An Accra High Court (Commercial Division) has ordered First Atlantic Bank to pay a customer more than GH¢10 million after ruling that the bank tendered government bonds on the customer’s behalf without consent.
The court found that the bank acted unlawfully by submitting the customer’s bonds under the Domestic Debt Exchange Programme (DDEP) without obtaining proper authorisation. The judgment followed a legal dispute in which the customer challenged the bank’s handling of their investment.
According to the ruling, the bank breached its fiduciary duty by making a significant financial decision without the customer’s approval. The court held that financial institutions are required to act strictly within the instructions given by their clients, especially in matters involving investments and asset management.
In its decision, the court awarded the customer compensation exceeding GH¢10 million, covering the value of the bonds and additional financial losses suffered as a result of the unauthorised transaction. The ruling underscores the importance of transparency and consent in banking operations.
The case has drawn attention within Ghana’s financial sector, particularly amid heightened scrutiny of banks’ roles during the implementation of the government’s debt restructuring programme. Legal analysts say the judgment serves as a reminder that participation in such programmes must be based on clear customer approval, regardless of broader economic pressures.
First Atlantic Bank has not publicly commented on whether it will appeal the decision. However, the ruling is expected to influence how banks engage clients on investment decisions, especially during periods of economic uncertainty.
The judgment reinforces the principle that customers’ rights must be protected and that banks may face serious financial consequences if they act outside the scope of their mandate.
Source: Thepressradio.com
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